GST on UPI Payments: What’s the Real Story?

GST on UPI Payments: What’s the Real Story?

Blog Article

A recent buzz on social media has left many Indians confused: Is the government now charging GST on UPI payments? The short answer: No, GST is not being charged on UPI transactions themselves.

Let’s clear the air.

UPI (Unified Payments Interface) has revolutionized digital payments in India, offering a seamless and free way to transfer money. Concerns arose after reports claimed that GST would now apply to UPI transactions. However, the government and the NPCI (National Payments Corporation of India) have clarified that no GST is levied on peer-to-peer (P2P) or regular merchant UPI payments.

So, where does GST come in?

GST may apply to value-added services offered by payment gateways, banks, or apps like Paytm, PhonePe, etc. For example, if a platform provides a premium service like instant settlements or subscriptions for businesses, those services can attract GST.

But rest assured, if you’re just sending money to a friend or paying your local shopkeeper via UPI — there’s no extra GST charge.

In summary:
✔️ No GST on regular UPI payments
⚠️ GST only on certain paid services by platforms

Stay informed and don’t fall for misinformation. Digital India is still going strong — and UPI remains free for users.

WRITTEN BY:-HEXADECIMAL SOFTWARE AND HEXAHOME

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